US investors reluctant to abandon cyclical plays

NEW YORK: Even as record highs last week in the major US stock indexes telegraph confidence on Wall Street, caution abounds in other US markets, where falling bond yields and flailing small-cap stocks indicate investors are torn about where to place bets.

Hints from Federal Reserve policymakers that the central bank will cut interest rates have buoyed both US stocks and Treasuries. The S&P 500, the Dow Jones Industrial Average and Nasdaq have all notched new highs last week, while yields on the benchmark 10-year Treasury note dropped below 2% to their lowest since late 2016.